of the following is TRUE about the listing of assets in order of their liquidity on a balance sheet?
A) Short-term investments are less liquid than short-term current receivables because the company must collect the receivables.
B) Receivables are less liquid than merchandise inventory because the goods must first be sold.
C) Cash is listed first because it is the most liquid asset.
D) All of the statements above are true.

Question

Quizplus · Accepted Answer

Cash is listed first on a balance sheet because it is the most liquid asset, meaning it can be readily used or converted into other forms of assets or settled for liabilities.

Of the Following Is TRUE About the Listing of Assets